Monday, August 11, 2003

WEALTHY PEOPLE DON'T PAY TAXES

Part of the common wisdom, right? The rich can afford accountants and attorneys to avoid such things. That's what every politician would like you to believe.

Like a lot of "urban myths", the rich pay a lot of taxes, and when a regional economy (like "Silicon Valley") takes a big hit, the amount of taxes paid takes a disproportionate hit when a lot of folks who live there are "wealthy".

I didn't realize until reading this column this morning how much of an effect the taxes the rich pay can affect a state's financial health. If you read Dan Weintraub's article you'll see that the taxes paid in 2001, compared to 2000, by those in California making $1 million a year or more dropped $7 billion.

$7 billion!

How many states can take a year-over-year hit of $7 billion and survive? Well, if you're California, it seems you ignore it and spend even more. That's how you wind up with a $30+ billion deficit.

And, of course, the Democrats in California have the answer -- raise taxes.


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